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Bulk tea producer, McLeod Russel, has signed agreements with two Kolkata-based non-tea firms to sell a total of six tea estates in Assam and in Dooars, West Bengal for a total consideration of ₹232.32 crore.
This marks the fourth tranche of sale by the company. McLeod Russel has already sold 14 estates in Assam with a total production capacity of 16.58 million kg (mkg) for ₹563.29 crore since June this year.
The company has entered into agreement with Saffron Enclave Private Ltd for the sale of four estates — Addabarie, Dirai, Mahakali and Rajmai in Assam for a total consideration of ₹80.70 crore, it said in a notification to the bourses. It has also entered into an agreement with Civil Engineers Enterprises for sale of two estates—Chuapara and Jainti in Dooars for ₹51.62 crore.
With this, the company will be able to raise around ₹795 crore through sale of the 20 tea estates spread across Assam and Dooars.
The sale proceeds would be used to pare debt, which stood at ₹976 crore as on March 31, 2018, as well as to acquire overseas assets and invest in the packet-tea segment, where it currently has a marginal presence.
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